NEW BOND ISSUE REPORT

Transcription

1 Name of Bond Issue: Purpose of Issue: Name of Project: NEW BOND ISSUE REPORT Kentucky Housing Corporation Tax-Exempt Conduit Multifamily Housing Revenue Bonds (Winterwood HPW Portfolio), Series 2018 The bonds will be used to finance the acquisition, rehabilitation and equipping of the Winterwood HPW Portfolio, a one hundred and forty-eight unit project located at the addresses provided in Exhibit A. The Kentucky Housing Corporation has conducted a public hearing concerning the proposed project on June 13, 2017 following the delivery of notice to the public on May 26, Winterwood HPW Portfolio Date of Sale: February 28, 2018 Date of Issuance: February 28, 2018 Ratings: Private Placement Net Proceeds: $9,300,000* Cost of Issuance: Bond Discount: $0 Debt Service Reserve Fund: Insurance Premium: See Exhibit B attached (costs of issuance paid from owner equity) $0, but a $496,824,267 operating reserve will be funded from equity. N/A Total Project Cost: $19,191,531* Net Interest Rate: 4.86%* Term: 35 years Average Debt Service: $553,308* Gross Debt Service: $19,365,725* First Call Date: February 2028 Premium at First Call: Method of Sale: Bond Counsel: Underwriter: Financial Advisor: Underwriter Counsel: Trustee: Developer: No premium Private Placement (Freddie Mac) Dinsmore & Shohl LLP N/A N/A N/A N/A Smart Property Group, LLC *Preliminary Subject to Change

2 EXHIBIT A Holly Point Apartments 134 Wallins Street, #77, Harlan, KY # Units Type 16 1 BR 54 2 BR 6 3 BR 76 TOTAL Cedar Crag Terrace Apartments 429 Memorial Dr, Manchester, KY # Units Type 8 0 BR 24 1 BR 32 TOTAL Whitney Woods Apartments 700 Whitney Woods Place, Lexington, KY # Units Type 30 2 BR 10 3 BR 40 TOTAL

3 EXHIBIT B Project Funding Sources: Assumed Second Mortgages $ 1,117,679 Existing Reserves 300,000 Tax Credit Equity 4,866,330 Deferred Developer Fee 743,522 KHC AHTF & HOME 2,464,000 Local AHTF Funds 400,000 Permanent Mortgage Loan 9,300,000 TOTAL $ 19,191,531 Costs of Issuance: Origination Fee $ 150,000 KHC Counsel 15,000 KHC Financing Fee 48,653 KHC Application Fee & Expenses 10,500 KHC Admin Fee 5,000 Bond Counsel 68,900 Lender Counsel 69,900 Borrowers Counsel 50,000 TEFRA/Publication/Print 5,000 TOTAL $ 422,953

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9 NEW BOND ISSUE REPORT Name of Bond Issue: Purpose of Issue: Name of Project: Kentucky Housing Corporation Tax-Exempt Conduit Multifamily Housing Revenue Notes (SOCAYR Portfolio), Series 2017 The proceeds will be used to finance the acquisition, rehabilitation and equipping of the multifamily residential rental facilities listed in Exhibit A. The Kentucky Housing Corporation has conducted a public hearing concerning the proposed project on November 21, 2017 following the delivery of notice to the public on November 4, SOCAYR Portfolio Date of Sale: December 28, 2017 Date of Issuance: December 28, 2017 Ratings: Private Placement Net Proceeds: $13,000,000* Cost of Issuance: Insurance Premium: See Exhibit B attached (costs of issuance above 2% will be paid from owner equity) N/A Total Project Cost: $25,402,725* Net Interest Rate: 5.25* Term: 30 years* Average Debt Service: $861,438* Gross Debt Service: $25,843,133* First Call Date: October 1, 2019 Premium at First Call: Method of Sale: Bond Counsel: Financial Advisor: Underwriter Counsel: Trustee: Developer: No premium Private Placement (Boston Financial/Stockyards Bank) Stites & Harbison PLLC The Housing Partnership, Inc. N/A N/A SOCAYR, Inc./The Housing Partnership, Inc. *Preliminary Subject to Change

10 EXHIBIT A SOCAYR LLCs Prince Hall Village Apartments 1100 Prince Hall Village Frankfort, KY Units (10 1BR, 70 2BR, 20 3BR) Adairville Arms Apartments 125 Staggers Ave Adairville, KY Units (8 1BR, 12 2BR, 10 3BR) Staggers Manor Apartments 216 E Gallatin St Adairville, KY Units (20 1BR) York Towers York Towers Apartments 201 York St Louisville, KY Units (50 Studios, 39 1BR)

11 EXHIBIT B Project Funding Sources: Tax-Exempt Bond Financing $ 13,000,000 LIHTC and Historic Equity 3,181,416 Assumed Second Mortgages 1,880,684 KHC HOME 2,779,000 KHC AHTF 500,000 Louisville Metro HOME 500,000 HOME Match 75,000 Seller Note 2,085,525 Deferred Developer Fee 1,401,100 TOTAL $ 25,402,725 Costs of Issuance: Issuer Fee $ 65,000 KHC Counsel 15,000 KHC Financing Fee 42,984 KHC Application Fee & Expenses 14,000 KHC Admin Fee 5,000 Bond Counsel 50,000 Issuer Counsel 13,000 Borrowers Counsel 70,000 TEFRA/Publication/Print 5,000 TOTAL $ 279,984

12 BEACON PROPERTY MANAGEMENT COMPANY, INC South Fourth Street Louisville, KY Fax: BEACON Property Management, Inc. is a privately owned corporation founded in 1998 to develop and manage a diverse portfolio of affordable housing. SOCAYR Property Management, Inc. is a non-profit, 501c3, founded in 2000 to continue in the development and management of affordable housing. The Property Management Division has been successful in leasing over 55 new properties since its inception. Currently there are 65 communities comprised of 3500 housing units managed by BEACON Property Management and SOCAYR Property Management. The staff of BEACON Property Management, Inc. is seasoned, experienced, and certified. Beacon/SOCAYR Property Management currently employs 130 housing professionals at various capacities. RESUMES OF MANAGEMENT PERSONNEL Travis Yates, CPM: President, CEO Qualifications: Graduate of Indiana University, major field of study communications. Certification as a Property Manager with the Institute of Real Estate Management, Holds a Real Estate License in the State of Kentucky, Certification as Apartment Manager with the National Apartment Association, has attained recognized certifications in tax credit housing, C3P Certification with Executive Standing, HCCP Certification of Tax Credit Compliance, Certified Occupancy Specialist, and several housing management certifications from other nationally recognized organizations. Rob Barr: Vice President, Physical Assets & Development Employment: August Oversees company s physical asset portfolio to identify financial and physical challenges, facilitates rehabs using LIHTC program, assist asset managers with preparing for REAC inspections, Capital Improvement budgets, Replacement Reserve analysis, Physical Needs Assessments,, budget preparation, rent increases and compliance of HUD regulations Qualifications: Bachelors Degree in Business Administration with minor in Accounting. A member of IREM (Institute of Real Estate Management), Mortgage Bankers of America. Certified HUD REAC inspector through U.S Department of HUD, Certified Occupancy Specialist (C0S) through the National Center for Housing Management, HCCP Certification of Tax Credit Compliance.

13 Previous career positions include, Assistant Director Asset Management Kentucky Housing Corporation; Loss Mitigation Supervisor, PNC Bank., Branch Manager for Kentucky Finance Company. Steve Giles, CPM: Vice President of Operations Employment: October Serves all companies affiliated with Beacon Property Management as the Vice President of Operations, for all communities under fee management contracts. Oversees day-to-day operations as they relate to customer service, lease-up, resident retention, evictions. Works directly with Senior Asset Mangers and Regional Managers in all aspects of project operations. Qualifications: Bachelors Degree in Finance from the Indiana University, Certified Property Manager through the Institute of Real Estate Management, Certification as Apartment Manager with the National Apartment Association, has attained recognized certifications in tax credit housing, C3P Certification with Executive Standing, HCCP Certification of Tax Credit Compliance and several housing management certifications from other nationally recognized organizations including Certified Occupancy Specialist. Stacey Graham, CPM: Vice President of Operations Employment: January Serves all companies affiliated with Beacon Property Management as the Vice President of Operations, for all communities under fee management contracts. Oversees day-to-day operations as they relate to customer service, lease-up, resident retention, evictions. Works directly with Senior Asset Mangers and Regional Managers in all aspects of project operations. Qualifications: Certified Property Manager through the Institute of Real Estate Management, Certification as Apartment Manager with the National Apartment Association, has attained recognized certifications in tax credit housing, C3P Certification with Executive Standing, HCCP Certification of Tax Credit Compliance and several housing management certifications from other nationally recognized organizations including Certified Occupancy Specialist and Certified Professional of Occupancy. Brandie Bryan: Vice President of Finance Employment: February Oversees the day to day operations of the accounting staff in all areas of cost controls. Works directly with owners and lenders on budget preparations, year end financial obligations such as audit reporting, and monthly financials. Qualifications: Bachelors Degree in Business Administration with a concentrated field in accounting. Member of the Golden Key Honor Society for the University of Louisville

14 Tara Smith, CPA: Director of Finance Affordable Housing Division Employment: August Oversees the day-to-day operations of the accounting department, financial reporting, budget preparation and special projects for the affordable housing division. Qualifications: Qualifications: Bachelor s degree in Accounting from the University of Kentucky, over 16 years of experience in both the public and private accounting sector, including performing HUD audits for five years in the public sector. Michelle Moser: Director of Compliance Employment 9/12-Present Beacon Properties/SOCAYR Property Management Compliance Director (for 50 LIHTC complexes, 2445 units) Responsible for Tax Credit Compliance for properties located in Kentucky, Indiana, and Ohio including but not limited to application approvals, investor reporting, and handling of investor/state audits. Certifications held include HCCP (Housing Credit Certified Professional), COS (Certified Occupancy Specialist), and TCS (Tax Credit Specialist). 9/00-9/12 Beacon Properties/SOCAYR Property Management Chief Financial Assistant (for 20 apartment complexes) Accounts Payable Payroll and Payroll Taxes Audit Accounts Receivable Security Deposit Recaps and Disbursements on move outs Bank Reconciliations Monthly Financials Statements as well as Quarterly/Annual Reporting Qualifications: Sullivan University Louisville, KY Bachelors of Science in Business Management Minor in Marketing and Business Administration G.P.A. 3.80

15 Howard Gibson: Maintenance Supervisor Qualifications: Thirty years (30) of service in the apartment industry. Asset Managers Our regional and senior asset managers have first-hand field experience as community managers and financial assistants. Our compliance officer ensures full compliance with all applicable government regulations. All have completed required certifications relating specifically to the affordable housing industry. The Beacon/SOCAYR staff is committed to delivering excellent service to all residents, clients, owners, and investors.

16 1512 Crums Lane, Suite 401 Louisville, KY Agency Profile Incorporated 1990 Vision Mission History Services Staff Creating communities in which affordable housing of choice is possible for everyone. To create, sustain and promote access to affordable housing opportunities. The charter class of Bingham Fellows, a program of Leadership Louisville, recommended the creation of a non-profit, private 501(c)3 corporation to assemble and expedite the resources necessary to develop affordable housing. In 1990, Louisville Housing Development Corporation, created in 1988 as a city-funded non-profit corporation, became The Housing Partnership, Inc., a private Nonprofit Corporation. A Board of Directors, composed of private, nonprofit and public constituencies oversees the policies and operations. Mr. J. Barry Barker currently serves as Chairperson of the Board of Directors. The Housing Partnership is an entrepreneurial nonprofit corporation divided into four main lines of business. Through Real Estate Development Advisory Services we preserve and create multifamily housing Single-Family Housing Production manages site development and oversees construction and rehabilitation of modestly priced homes. Our home ownership programs include financial empowerment, first-time homebuyer education and foreclosure mitigation. Asset and Property Management oversees rental property where HPI has a vested interest. The Housing Partnership is a member of NeighborWorks America and the Housing Partnership Network. The Housing Partnership, Inc. (HPI) currently employs 69 people under the leadership of Mike A. Hynes, President. The Numbers 168 developments, 9,776 units produced, $784,303,873 invested. Rev. 7/1/2017

17 Preliminary New Bond Issue Report Issue: $23,000,000 (est.) Eastern Kentucky University General Receipts Bonds, 2018 Series A; and $6,600,000 (est.) Eastern Kentucky University General Receipts Refunding Bonds, 2018 Series B Purpose of Issue: Bond proceeds will be used to 1) finance the project listed as "Construct Student Life Facilities" as authorized in H.B. 303 of the 2016 Regular Session of the Kentucky General Assembly; 2) advance refund certain outstanding Eastern Kentucky General Receipts Bonds, 2009 Series A; and 3) pay associated costs of issuance. Proposed Date of Sale: Proposed Date of Delivery: January 9, 2018 January 30, 2018 Ratings: Moody's TBD 2018 Series A 2018 Series B Total Sources: Par amount of bonds: $21,210, $6,015, $27,225, Premium: $1,278, $38, $1,316, Total Sources: $22,488, $6,053, $28,541, Uses: Project Fund Deposit: $22,000, $22,000, Refunding Escrow Deposit: - $5,929, $5,929, Cost of Issuance $63, $48, $112, Underwriter Discount $424, $75, $499, Total Uses: $22,488, $6,053, $28,541, All-in True Interest Cost: 3.583% 2.539% Final Maturity Date: 10/1/2037 5/1/2028 Average Annual Debt Service: $1,573, $671, Total Debt Service: $30,953, $6,886, Average Life (years): Refunding Summary: Bond Issue Being Refininanced: See Summary of Bonds Refunded (attached) Par Amount of Refunded Bonds: $5,700, Net PV Savings: $360, Percentage Savings of Refunded Bonds: 6.318% Method of Sale: Bond Counsel: Financial Advisor: Trustee: Competitive Dinsmore & Shohl Hilliard Lyons U.S. Bank Based off cashflows as of 10/30/17 Preliminary Subject to Change

18 Oct 2, :16 pm Prepared by Hilliard Lyons (Finance Eastern Kentucky University:2018_22M 2018_LC) Page 2 BOND DEBT SERVICE Eastern Kentucky University Revenue Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service 04/01/ , , /30/ , /01/ , % 424, ,129, /01/ , , /30/2019 1,539, /01/ , % 410, ,145, /01/ , , /30/2020 1,540, /01/ , % 395, ,160, /01/ , , /30/2021 1,540, /01/ , % 380, ,175, /01/ , , /30/2022 1,539, /01/ , % 364, ,194, /01/ , , /30/2023 1,541, /01/ , % 347, ,212, /01/ , , /30/2024 1,542, /01/ , % 330, ,230, /01/ , , /30/2025 1,542, /01/ , % 312, ,247, /01/ , , /30/2026 1,540, /01/ , % 293, ,268, /01/ , , /30/2027 1,542, /01/2027 1,010, % 274, ,284, /01/ , , /30/2028 1,538, /01/2028 1,055, % 253, ,308, /01/ , , /30/2029 1,541, /01/2029 1,095, % 232, ,327, /01/ , , /30/2030 1,538, /01/2030 1,140, % 210, ,350, /01/ , , /30/2031 1,539, /01/2031 1,190, % 188, ,378, /01/ , , /30/2032 1,542, /01/2032 1,235, % 164, ,399, /01/ , , /30/2033 1,538, /01/2033 1,285, % 139, ,424, /01/ , , /30/2034 1,538, /01/2034 1,340, % 113, ,453, /01/ , , /30/2035 1,541, /01/2035 1,395, % 87, ,482, /01/ , , /30/2036 1,541, /01/2036 1,450, % 59, ,509, /01/ , , /30/2037 1,539, /01/2037 1,510, % 30, ,540, /30/2038 1,540, ,210,000 9,743, ,953, ,953,356.67

19 Oct 30, :52 pm Prepared by DBC Finance (Finance Eastern Kentucky University:REF_09 REF_09,REF_09) Page 2 BOND DEBT SERVICE Eastern Kentucky University Refunding of Series 2009 NON BQ Rates Period Annual Ending Principal Coupon Interest Debt Service Debt Service 05/01/ , % 34, , /30/ , /01/ , , /01/ , % 68, , /30/ , /01/ , , /01/ , % 67, , /30/ , /01/ , , /01/ , % 60, , /30/ , /01/ , , /01/ , % 53, , /30/ , /01/ , , /01/ , % 46, , /30/ , /01/ , , /01/ , % 39, , /30/ , /01/ , , /01/ , % 32, , /30/ , /01/ , , /01/ , % 24, , /30/ , /01/ , , /01/ , % 16, , /30/ , /01/2027 9, , /01/ , % 9, , /30/ , ,015, , ,886, ,886,777.81

20 Oct 30, :52 pm Prepared by DBC Finance (Finance Eastern Kentucky University:REF_09 REF_09,REF_09) Page 4 SAVINGS Eastern Kentucky University Refunding of Series 2009 NON BQ Rates Present Value Prior Refunding to 01/30/2018 Date Debt Service Debt Service % 06/30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , ,284, ,886, , , Savings Summary PV of savings from cash flow 358, Plus: Refunding funds on hand 1, Net PV Savings 360,141.88

21 Oct 30, :52 pm Prepared by DBC Finance (Finance Eastern Kentucky University:REF_09 REF_09,REF_09) Page 10 SUMMARY OF BONDS REFUNDED Eastern Kentucky University Refunding of Series 2009 NON BQ Rates Maturity Interest Par Call Call Bond Date Rate Amount Date Price General Receipts Bonds, 2009 Series A, 2009: SERIAL 05/01/ % 580, /01/ /01/ % 605, /01/ /01/ % 630, /01/ /01/ % 655, /01/ /01/ % 680, /01/ /01/ % 710, /01/ /01/ % 740, /01/ TERM 05/01/ % 1,100, /01/ ,700,000.00

22 Preliminary New Bond Issue Report Issue: $4,200,000 (est.) Murray State University General Receipts Refunding Bonds, 2017 Series A Purpose of Issue: Bond proceeds will be used to 1.) advance refund certain outstanding Murray State University General Receipts Bonds, 2009 Series A; and 2.) pay associated costs of issuance. Proposed Date of Sale: December 13, 2017 Proposed Date of Delivery: December 28, 2017 Ratings: Moody's TBD 2017 Series A Refunding Sources: Par amount of bonds: $4,005, Net Premium: $171, Total Sources: $4,176, Uses: Escrow Fund Deposit: $4,075, Cost of Issuance: $50, Underwriter Discount: $50, Total Uses: $4,176, All-in True Interest Cost: 2.65% Final Maturity Date: 9/1/2028 Average Annual Debt Service: $452, Total Debt Service: $4,853, Average Life (years): Refunding Summary: Bond Issue Being Refininanced: See Summary of Bonds Refunded (attached) Par Amount of Refunded Bonds: $3,870, Net PV Savings: $218, Percentage Savings of Refunded Bonds: 5.65% Method of Sale: Bond Counsel: Financial Advisor: Trustee: Competitive Dinsmore & Shohl, LLP Hilliard Lyons U.S. Bank Based off cashflows as of 11/2/17 Preliminary Subject to Change

23 Nov 2, :26 pm Prepared by DBC Finance (Finance Murray State University:REF_09 REF09,REF_09) Page 2 BOND DEBT SERVICE Murray State University General Receipts Bonds Refunding of Series 2009 Period Ending Principal Coupon Interest Debt Service 06/30/ , % 24, , /30/ , % 113, , /30/ , % 113, , /30/ , % 112, , /30/ , % 108, , /30/ , % 97, , /30/ , % 83, , /30/ , % 69, , /30/ , % 54, , /30/ , % 39, , /30/ , % 24, , /30/ , % 8, , ,005, , ,853,951.67

24 Nov 2, :26 pm Prepared by DBC Finance (Finance Murray State University:REF_09 REF09,REF_09) Page 4 SAVINGS Murray State University General Receipts Bonds Refunding of Series 2009 Present Value Prior Refunding to 12/13/2017 Date Debt Service Debt Service % 06/30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , /30/ , , , , ,098, ,853, , , Savings Summary PV of savings from cash flow 216, Plus: Refunding funds on hand 2, Net PV Savings 218,762.62

25 Nov 2, :26 pm Prepared by DBC Finance (Finance Murray State University:REF_09 REF09,REF_09) Page 9 SUMMARY OF BONDS REFUNDED Murray State University General Receipts Bonds Refunding of Series 2009 Maturity Interest Par Call Call Bond Date Rate Amount Date Price Series 2009A, 2009A: BOND 09/01/ % 415, /01/ /01/ % 435, /01/ /01/ % 455, /01/ /01/ % 470, /01/ /01/ % 490, /01/ /01/ % 510, /01/ /01/ % 535, /01/ /01/ % 560, /01/ ,870,000.00

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